impact of the current monetary policy on aggregate demand in the Australian economy?? (1 Viewer)

[lanamariie]

evaluate the impact of the current monetary policy on aggregate demand in the Australian Economy ?

You guys please help out with this question !!! any help is very much appreciated

 

[Anonym0us]

Re: impact of the current monetary policy on aggregate demand in the Australian econo

The cash rate (last time I checked was 3.5%), and has decreased from previous years. The lower cash rate is to increase demand, due to the sovereign debt crisis which has caused much uncertainity in spending within the domestic economy. Also the lower cash rate was implemented to depreciate the AUD, to increase exports and reduce BOGS deficit
Hope that helps

 

[asadass]

Re: impact of the current monetary policy on aggregate demand in the Australian econo

Basically what anonymous said. Here's what i have in my notes.
This recent stance reflects low inflation in the March 2012 quarter, uneven growth in the economy, weaker international conditions and consumer confidence, and the impact of a high $A on industries. These lower interest rates aim to encourage economic activity and support employment (particularly in retain, housing, manufacturing and construction industries), depreciate the $A and so improve international competitiveness (inbound tourism, education and manufacturing exports).